On February 3, Bitcoin (BTC) saw a notable attempt to rebound as trading kicked off on Wall Street, leading to fresh price shifts. According to insights gathered from Cointelegraph Markets Pro and TradingView, BTC/USD climbed past the $97,000 threshold, marking a jump of roughly 6.7% from a local low of $91,530 observed at the start of the week. This upward movement seemed to sync with market reactions to the U.S. government’s announcement of tariffs on Canada and Mexico, with President Donald Trump also indicating intentions to apply these tariffs to the European Union shortly.
Market Sentiment and Altcoins
In contrast, the mood was grim for altcoins, which suffered considerable downturns amid the risk-asset sell-off. Many cryptocurrencies within the top twenty by market cap witnessed declines of 20% or more. Well-known trader Johnny pointed out that as long as Bitcoin stays above its previous lows and the annual opening price, it is faring relatively better than the broader market. This suggests that much of Bitcoin’s pullback might have already occurred.
Future Price Movements
Rekt Capital provided additional insights, revealing a new “gap” in the Bitcoin futures market operated by CME Group, sitting above the $98,000 mark. Gaps like this often attract short-term price movements once trading resumes. Rekt Capital noted that a volatile retest at this level was currently in progress while evaluating the monthly BTC/USD chart.
Despite Bitcoin’s upward bounce, U.S. stock indices faced a downturn, with the S&P 500 slipping by 1.75% and the Nasdaq Composite Index dropping 2.25% during the same timeframe. The trading firm QCP Capital reported that leading up to the U.S. market opening, nearly $2 billion worth of liquidations occurred in the cryptocurrency space, with Ethereum bearing the brunt more than Bitcoin.
Technical Insights
On a more positive note, the Relative Strength Index (RSI) for Bitcoin on the 4-hour timeframe showcased some encouraging signs. That day, the BTC/USD 4-hour RSI dipped below the 30 mark, indicating it was oversold— a condition seen before significant rebounds. Caleb Franzen, founder of Cubic Analytics, noted that in the last six months, the BTC 4-hour RSI had only registered a handful of drops below this crucial level, and each instance turned out to be an opportune moment for accumulation.
In summary, while Bitcoin is exhibiting resilience, the overall market sentiment remains tense, underscoring the volatility that defines the cryptocurrency landscape.
Source: Cointelegraph
